All but one of the following have been suggested by some economists as possible consequences of path dependency and switching costs.Which of the following is not a possible consequence of path dependency and switching costs?
A)Consumers may get locked into using products with inferior technology.
B)Market failure
C)Diseconomies of scale
D)Government intervention may be necessary in affected markets in order to improve economic efficiency.

Question

Quizplus · Accepted Answer

Diseconomies of scale refer to the increase in per-unit costs as a firm's output increases, which is not directly related to the concepts of path dependency and switching costs. Path dependency and switching costs can lead to consumers being locked into inferior products, market failures, and potentially necessitate government intervention to improve efficiency, but they do not inherently cause diseconomies of scale.

All but One of the Following Have Been Suggested by Some